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PF 5.03

QuestionAnswer
Bond Investment loan
Brokerage Firm To go through to buy stocks
Capital Gain Sell your investment and make money
Discount Brokerage Firm (E-trade) Buy and sell stocks
Divided When you have stock company making money and give to the shareholders.
Financial Advisor They help manage your money
Full-service Brokerage Firm Buy stocks and sell them also advises you
Index A group of similar stocks and bonds
Inflation The rise in prices
Inflation risk The danger when you sell something your stock might not be good enough to use.
Investment Has risk but trying to make more money or income.
Investment Philosophy Individual approach to risk
Market Price The price of that stock
Maturity Date The date when a bond is over and when you get money and interest back
Mutual Fund When you want to spread out your risk.
Portfolio Diversification Reduces risk by spreading money among a wide array of investments
Rate of return Calculate what is the percentage of what you get when you sell an investment
Rent A fee for using someone property or land
Return How much you make by saving and investing
Risk A loss
Speculative investments Have high risk over a short period of time
Stock Ownership in a company
Stockholder or Shareholder Owner of a stock
Stock Exchange Buy and sell stock (Trading at different places)
Tax-advantaged investments Reduce, defer, or adjust the current year tax liability
Investment risk The possibility to win it all or lose it all
Created by: abigail.xiong59